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Minimum Wage Powerpoint

2.
<ul><li>Currently, there are 30 million Americans living on $5.15 an hour, the federal minimum wage. In the legal sense, this bluntly refers to “the wage below which it is illegal to employ someone.” </li></ul><ul><li>Full-time workers who earn $5.15 an hour, 40 hours a week, 52 weeks earn an income below the poverty threshold. </li></ul><ul><li>The minimum wage debate recently arose because the United States Congress had not increased it since September 1997. </li></ul><ul><li>Democrats currently want a $1.50 increase in the minimum wage over 18 months. </li></ul>

5.
<ul><li>Good </li></ul><ul><li>The better workers are employed. </li></ul><ul><li>The minimum wage reduces poverty. </li></ul><ul><li>An increase would help working families at the bottom income level. </li></ul><ul><li>Some people who work for minimum wage never see an increase. </li></ul><ul><li>There has been little or no effect on increasing unemployment when the minimum wage rises. </li></ul><ul><li>Bad </li></ul><ul><li>Most minimum wage earners are teenagers or are providing supplemental income to a primary wage earner </li></ul><ul><li>Decreases amount of entry level positions </li></ul><ul><li>Makes it hard for small businesses to survive </li></ul><ul><li>Might result in a parallel increase in the prices of goods that are made by companies because of the increase in production costs, thus contributing to inflation in the long run. </li></ul>

7.
<ul><li>The EITC is a “refundable federal income tax credit for low-income working individuals and families” (Internal Revenue Service 3). </li></ul><ul><li>A 10 percent increase in the maximum EITC refundable credit reduces poverty rates by 7 percent among full- time employed single moms (Henry Paulson, Treasury Department Briefing). </li></ul><ul><li>The EITC affects many of the same actors that increasing the minimum wage does, but it impacts the U.S. government to a much greater degree. </li></ul><ul><li>Increasing EITC programs reduce government revenue that could be used to help working class families in the form of social welfare programs. </li></ul><ul><li>The EITC is a more efficient policy than the minimum wage at targeting low-income households because it is based on family income and not wage levels of a single, possibly supplementary worker. </li></ul>